IRS orders immediate stop to new ERC processing
September 20, 2023
On September 14, the Internal Revenue Service (IRS) made an unprecedented announcement to place a moratorium on Employee Retention Credit (ERC) claims, sending a clear message to ERC mills and helping small businesses.
Effective Sept. 14, 2023, the IRS will not review or process any ERC claims received on or after September 14 through at least the end of 2023. The IRS is also encouraging taxpayers with existing claims to withdraw their claims if they are believed to be ineligible.
The IRS has provided an ERC Eligibility Checklist to help small businesses better understand if they qualify. The IRS will initiate a settlement claim for those businesses that already have a processed claim and are ineligible.
IRS moratorium information and resources
- AICPA press release, issued September 14
- IRS ERC press release
- IRS Red flags for ERC
- IRS ERC eligibility checklist
- IRS Letter to Chairman Wyden
- AICPA written statement for the record for the HWM ERC hearing
- “ERC suspended: What happens next” (AICPA Podcast)
- ERC Fact or Fiction? (AICPA Guide)
- “Moratorium imposed on new ERC claim processing to curb abuse" (Article, Journal of Accountancy)